Trade Algo Strategists Explain Why BTC Bounced

There appears to be a massive pullback in Bitcoin's price after it reached levels beyond $25,000 for a short period of time. This pullback is likely to last until the end of the day. It's clear that the bears have mounted enough pressure on the price, but the bulls are likely to hold the price above $24,500 and push it toward the edge of the consolidation.

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The BTC price may, however, be influenced by a number of events lined up with the crypto space in the upcoming days, and in that case, the price may remain volatile for the next couple of days.

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It is typically considered bearish to trade within a rising wedge, as a notable pullback may be expected. For the past couple of days, the price has been attempting to rise above the resistance level in an attempt to break out.

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Despite this, the rally has failed to achieve this goal as it is stuck just below the resistance level. It is expected that the price will witness a steep drop at this point toward the interim support below $24,000 if the bulls get exhausted at this point. 

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The incoming trend, however, may have a major impact on the bitcoin price, as the FOMC's monthly meeting is scheduled to take place soon, which may result in a major change in the bitcoin price. Analysts from Trade Algo have shared their thoughts and have stated that they are quite bullish on Bitcoin in the long term, but that a fine bounce towards resistance may be in favor of 'tactical shorts' in the short term.

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Here, the analyst discusses Bitcoin's bullish implications. Despite the FED's tightening, Bitcoin's 50-week moving average has never fallen below its 200-week level. In addition, the crypto markets have bounced whenever they tested the $25,000 interim resistance level.